Who brings more Benefit? Is it the Employees or the Freelancers?

November 19, 2014 freelance services, hire resources
While starting a business, one should be clear about choosing his workers. There are two types of workers, employees and freelancers. Employment relationship is more important for making the business successful.


Who brings more benefits? freelancers or employees


Who are the Employees?

An employee is a worker who agrees to work with a company for certain form of payment as contract employee. Employees of a company have to work as per rules and regulations of their company and have to be in office for a fixed period of time. They have to pay taxes and insurance according to company regulation. They are provided with compensation like overtime pay, pay back taxes for unemployment, pay any workers, Medicare and social security. They are provided with promotion and monthly or yearly increment on their wages according to their experience and hard work.

Who are Freelancers?

A worker who is self employed and not committed to any employer are termed as Freelancers. Free lancers economy is growing in numbers nowadays for the freedom of work that one can say “I am the boss of my work, I get pay from a stranger not my boss”. Part timers can be able to schedule on their own wish and can enjoy their own taxes and health insurance independently. They are paid in day or hour or project basis according to their skills and experience. Sara Horowitz the founder of Freelancers Union has wrote in a recent article about the benefit of freelancing jobs. Who wants to “clock-out” at the end of the day while one can make their own schedule for work instead of doing break free 40 hour a week work.

Benefits of hiring employees

Depending upon the type of the business, employees such as accountants, salesperson, assistants and different level of managers should be hired in person as the company is in need of dedicated workers and they have to perform specific tasks. The main advantage in hiring a contract employee is that they will work for their own company and their boss. They will be available in person to represent the company in conferences, meeting and other networking events. The employee does the work according to what the employer says and they are given company specific training. So the output from the work of the employee will be perfectly matches with what the company needs.

Benefits of hiring freelancers

Freelancers will take care of their own expenses the company have to just pay them for their work. The cost of the work done by an employee will be more than the cost of the work done by a freelancer. Flexibility in working time is more advantageous. Even after the working hour of employees, a freelancer may work at the end of the day and end of the business week if they prefer. They will finish the assignments they have got in email and complete them within the time noted in the mail. To make a profit they work for more time and more assignments. They are well experienced as they work over wide range of businesses.


Choosing upon employers is the best option as there are significant drawbacks in hiring freelancers. On hiring freelancers, company will have less control over them than their employers. Quality of work changes from a freelancer to another freelancer. Hiring them as employees will make the work quality even. There is no right to fire a freelancer. Employees have compensation insurance but freelancers are not covered. If a freelancer got injured when they are hired, then they are liable to sue the company and recover damages. The companies cannot have copyright of the works done by freelancers and freelancing jobs. If any company has misclassified employees as freelancers, they have to face audits from tax agency. Beware of all the above reasons, hiring a employer will be a wise decision.

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